$51, 323, 233, 866, 518. That’s the current global public debt that exists all countries together. Next year it will rise to$54, 020, 847, 580, 179. At least, that’s the figure that is calculated as of this very second. Every second the clock notches up millions more. Rising debt means greater interference by the state and meddling in our affairs. The state thinks that because there is rising debt (which was created by their policies, anyway) they have the right to intervene in our everyday lives, for some strange unfathomable reason. But, what if we hold part of the solution in our own hands today? It’s sitting right under your noses or even under you and could be the answer to a part of our problem at least.
- In the UK, Lloyds TSB announced last year that there was an average of £320 million just sitting around gathering dust in homes in the country, either as loose change that is always on the person, money that has fallen down the back of the sofa or that has been saved up for a rainy day in some jar on the top of a kitchen cabinet somewhere.
- Men have an average of £18.18 and women much less with £10.19.
- 3% of the British have more than £100 in spare change just waiting around on the sideboard somewhere.
- That means that valuable money is either not earning interest (although with interest rates so low, who would want to) or it is being wasted, idly collecting dust and getting old.
- The US Treasury has also estimated that the average US household has about $90-100 just left unused at home.
- The US alone would be able to scrape together about $15 billion if they were to get that money out there right now!
- In one year in the US on average you could find about $1, 000 in change that has fallen out of the pocket of someone onto the sidewalk. But, how many of us pick up the dimes that fall on the ground?
- M0: But just how much money is there in the world anyhow all together, all currencies included? Estimates of what is known as M0 values it at to over $5 trillion. But it’s nothing as it is only the aggregate of coins and notes. But, it’s not the total money that we have available to us and at our disposal.
- M1: That’s because the central bank has the ability to make money and doesn’t need printing at all for it to come to life in our currencies. Then, commercial banks use that money to create more money.
- But, money is created virtually every day with Mr. A that takes $100 to pay into his bank account. He can then withdraw if he wishes the full sum of $100. But Ms. B needs a loan from that same bank and is granted $50 (and the bank uses the money that Mr. A doesn’t need or hasn’t withdrawn).
- So now we have a situation where one person deposited $100, but we have now created a total sum of $150 since Mr. A can withdraw that full sum and Ms. B will have to pay back the $50-loan. Money is so easily created via Fractional Reserve. All of that spendable money that is created by that type of banking, then we get M1, which stands at $25 trillion today.
- M2: This includes savings accounts on top of that amongst other things (money that we can’t get our hands on right away). That works out to about $60 trillion.
- M3: The global money all mentioned above and long-term investments that is not available very easily. It works out to: $75 trillion. That’s the world money supply.
If you’re wondering where you stand in the rankings with regard to how much of the $75 trillion belongs to you, then go to Global Rich List and enter your salary or your wealth and then you can find out what percentage of the population in the world you represent. You can see where you stand in the wealth rankings.
So, what can we do with the debt that is global, the money supply that stands at astronomic sums and yet failings of our economic systems? Reduce the debt and stop the state intervening in our everyday lives? We could all join forces and solve some of our problems. We could all join forces and do away with the Federal Reserve and other central banks and control the money supply somewhat if we scraped that loose change together and injected it at the same time into the economy. We could take on Bernanke at his own printing game, couldn’t we? Even if we couldn't do away with all of the debt, we might just do away with the Federal Reserve and the state's interference.
Just one problem is actually finding the billions that we have in loose change, or lost money.
You could always pray to St Anthony of Padua, the patron saint of lost things to find that spare cash that is hiding under your mattress or down the side of granny’s sofa. Failing that, there’s always St Jude. He’s the patron saint of lost causes and desperate situations. Does that fit the bill better? Seems like it.
Oh, but hey, forgot to say: Miracles don’t work anymore, otherwise we wouldn’t be in the mess that we’re in right now, would we?
Originally posted: Solution to the Economics Problem of the world